§53-16  Bonds of agency.  (a)  Aredevelopment agency may issue bonds from time to time in its discretion forany of its corporate purposes including the payment of principal and interestupon any advances for surveys and plans for redevelopment projects.  An agencymay also issue refunding bonds for the purpose of paying or retiring or inexchange for bonds previously issued by it.  An agency may issue such types ofbonds as it may determine, including (without limiting the generality of theforegoing) bonds on which the principal and interest are payable:

(1)  Exclusively from the income, proceeds, andrevenues of the redevelopment project financed with the proceeds of the bonds;or

(2)  Exclusively from the income, proceeds, andrevenues of any of its redevelopment projects whether or not they are financedin whole or in part with the proceeds of the bonds; provided that the bonds maybe additionally secured by a pledge of any loan, grant, or contributions, orparts thereof, from the federal government or other source, or a mortgage ofany redevelopment project or projects of the agency.

(b)  Neither the members of an agency nor anyperson executing the bonds shall be liable personally on the bonds by reason ofthe issuance thereof.  The bonds and other obligations of the agency (and suchbonds and obligations shall so state on their face) shall not be a debt of thecounty or the State and neither the county nor the State shall be liablethereon, nor in any event shall such bonds or obligations be payable out of anycounty or state funds or properties other than those of the agency acquired forthe purposes of this part.  The bonds shall not constitute an indebtednesswithin the meaning of any debt limitation or restriction.  Bonds of an agencyare declared to be issued for an essential public and governmental purpose andto be public instrumentalities and, together with interest thereon and incometherefrom, shall be exempt from all taxes.

(c)  Bonds of an agency shall be authorized byits resolution and may be issued in one or more series and shall bear such dateor dates, be payable upon demand or mature at such time or times, bear interestat such rate or rates, as established by the legislative bodies of thecounties, be in such denomination or denominations, be in such form eithercoupon or registered, carry such conversion or registration privileges, havesuch rank or priority, be executed in such manner, be payable in such medium ofpayment, at such place or places, and be subject to such terms or redemption(with or without premium) as the resolution, its trust indenture, or mortgagemay provide.

(d)  The bonds shall be sold at not less thanpar at public sale held after public notice given once at least ten days priorto the sale in the county; provided that the bonds may be sold to the federalgovernment at private sale at not less than par, and, in the event less thanall of the bonds authorized in connection with any project or projects are soldto the federal government, the balance of the bonds may be sold at private saleat not less than par at an interest cost to the agency of not to exceed theinterest cost to the agency of the portion of the bonds sold to the federalgovernment.

(e)  In case any of the members or officers ofthe agency whose signatures appear on any bonds or coupons cease to be membersor officers before the delivery of the bonds, the signatures shall,nevertheless, be valid and sufficient for all purposes, the same as if themembers or officers had remained in office until the delivery.  Any provisionof any law to the contrary notwithstanding, any bonds issued pursuant to thispart shall be fully negotiable.

(f)  In any suit, action, or proceedingsinvolving the validity or enforceability of any bond of an agency or the securitytherefor, any bond reciting in substance that it has been issued by the agencyto aid in financing a redevelopment project, as herein defined, shall beconclusively deemed to have been issued for the purpose and the project shallbe conclusively deemed to have been planned, located, and carried out inaccordance with the purposes of this part.

(g)  In connection with the issuance of bondsand in order to secure the payment of the bonds or obligations, an agency, inaddition to its other powers, may:

(1)  Pledge all or any part of its gross or net rents,fees, or revenues to which its right then exists or may thereafter come intoexistence;

(2)  Mortgage all or any part of its real or personalproperty, then owned or thereafter acquired;

(3)  Covenant against pledging all or any part of itsrents, fees, and revenues, or against mortgaging all or any part of its real orpersonal property, to which its right or title then exists or may thereaftercome into existence or against permitting or suffering any lien on the revenuesor property; covenant with respect to limitations on its right to sell, orotherwise dispose of any redevelopment project or any part thereof; andcovenant as to what other, or additional debts or obligations may be incurredby it;

(4)  Covenant as to the bonds to be issued and as tothe issuance of the bonds in escrow or otherwise, and as to the use anddisposition of the proceeds thereof; provide for the replacement of lost,destroyed, or mutilated bonds; covenant against extending the time for thepayment of its bonds or interest thereon; and covenant for the redemption ofthe bonds and provide the terms and conditions thereof;

(5)  Covenant (subject to the limitations contained inthis part) as to the amount of revenues to be raised each year or other periodof time by fees and other revenues, and as to the use and disposition to bemade thereof; create or authorize the creation of special funds for moneys heldfor operating costs, debt service, reserves, or other purposes, and covenant asto the use and disposition of the moneys held in the funds;

(6)  Prescribe the procedure, if any, by which theterms of any contract with bondholders may be amended or abrogated, the amountof bonds the holders of which must consent thereto, and the manner in which theconsent may be given;

(7)  Covenant as to the use, maintenance, andreplacement of any or all of its real or personal property, the insurance to becarried thereon, and the use and disposition of insurance moneys, and warrantits title to the property;

(8)  Covenant as to the rights, liabilities, powers,and duties arising upon the breach by it of any covenant, condition, orobligation; and covenant and prescribe as to events of default and terms andconditions upon which any or all of its bonds or obligations shall become ormay be declared due before maturity, and as to the terms and conditions uponwhich the declaration and its consequences may be waived;

(9)  Vest in any obligees of the agency the right toenforce the payment of the bonds or any covenants securing or relating to thebonds; vest in any obligee or obligees holding a specified amount in bonds theright, in the event of a default by the agency, to take possession of and use,operate and manage any redevelopment project or any part thereof, title towhich is in the agency, or any funds connected therewith, and collect the rentsand revenues arising therefrom and dispose of the moneys in accordance with theagreement of the agency with the obligees; provide for the powers and duties ofthe obligees and limit the liabilities thereof; and provide the terms andconditions upon which the obligees may enforce any covenant or rights securingor relating to the bonds;

(10)  Exercise all or any part or combination of thepowers herein granted; make the covenants (other than and in addition to thecovenants herein expressly authorized) and do any and all such acts and thingsas may be necessary or convenient or desirable in order to secure its bonds,or, in the absolute discretion of the agency, as will tend to make the bondsmore marketable notwithstanding that the covenants, acts, or things may not beenumerated herein.

(h)  An agency may by its resolution, trustindenture, mortgage, or other contract confer upon any obligee holding orrepresenting a specified amount in bonds, the right (in addition to all rightsthat may otherwise be conferred), upon the happening of an event of default asdefined in the resolution or instrument, by suit, action, or proceeding in anycourt of competent jurisdiction:

(1)  To cause possession of any redevelopment projector any part thereof, title to which is in the agency, to be surrendered to theobligee;

(2)  To obtain the appointment of a receiver of anyredevelopment project of the agency or any part thereof, title to which is inthe agency, and of the rents and profits therefrom.  If the receiver isappointed, the receiver may enter and take possession of, carry out, operate,and maintain the project or any part thereof and collect and receive all fees,rents, revenues, or other charges thereafter arising therefrom, and shall keepthe moneys in a separate account or accounts and apply the same in accordancewith the obligations of the agency as the court shall direct; and

(3)  To require the agency and the commissioners,officers, agents, and employees thereof to account as if it and they were thetrustees of an express trust.

(i)  An obligee of an agency shall have theright in addition to all other rights which may be conferred on the obligee,subject only to any contractual restrictions binding upon the obligee:

(1)  By appropriate action to compel the agency andthe members, officers, agents, or employees thereof to perform each and everyterm, provision, and covenant contained in any contract of the agency with orfor the benefit of the obligee, and to require the carrying out of any or allthe covenants and agreements of the agency and the fulfillment of all dutiesimposed upon the agency by this part; and

(2)  By appropriate action to enjoin any acts orthings which may be unlawful, or the violation of any of the rights of theobligee of the agency. [L 1949, c 379, pt of §4; am L 1951, c 244, pt of §3; RL1955, §143-16; HRS §53-16; am L 1968, c 43, §2; am L 1981, c 79, §1; gen ch1985; am L 1998, c 2, §20]